7 Ways in which Cloud and AI can boost integrated logistics

Outsourcing these responsibilities can also expedite delivery times, improve customer satisfaction, and reduce shipping costs—three huge wins bound to have positive impacts on your bottom line. Integrated logistics can support a business focussed on enhancing its customers’ experience. To achieve this, choosing the right integrated logistics partner matters, and that trust is vital. This partner should work with the business to understand its unique needs and priorities. As the connection between rising inflation and supply chain inefficiencies has become more evident, the value of achieving new levels of efficiency has grown. Innovative applications of AI in last-mile logistics empower companies to achieve those efficiencies by improving operations in various areas.

According to the ASCM, those with a CSCP certification report earning salaries that are 40% higher than their peers. Whale offers various comprehensive logistics services, such as warehouse and container yard services, free zone warehousing services, freight forwarding and customs clearance services, and land transportation services by truck. AI and machine learning algorithms enable logistics companies to be proactive in dealing with demand fluctuations.

This is achieved through global harmonized programs and tools, rooted in experience and sector best practices. While there is great potential for applying AI in transformative ways in the logistics space, businesses must acknowledge the technology is still in its infancy, particularly regarding the type of business applications noted above. Overestimating AI’s capability, especially in the B2B space, can lead to serious problems. Companies can improve efficiency in this area by using an AI-driven platform to help manage and assess sales reps’ performance, identify problem areas and provide guidance on how to increase effectiveness. AI can be cast in the role of a sales director, which has the potential to enhance efficiency, improve the ability to scale and cut back considerably on staffing costs. The following are some innovative and impactful ways companies use AI to improve last-mile logistics efficiency.

Maersk Customs Services

One unique aspect of the FedEx business model was introducing the “hub-and-spoke” system. This strategic distribution method allowed FedEx to streamline operations, reduce transit times, and increase reliability. The roots of FedEx can be traced back to the early 1970s, when Frederick W. Smith, a Yale University undergraduate, conceived the idea for an air cargo company that could deliver packages overnight. At the time, the logistics industry relied heavily on slow-paced ground transportation, leading to delayed and unreliable deliveries.

One such service is insurance, while they provide the first $100 of insurance for free, packages that are higher in value can require additional insurance payments. These value-added services are charged separately, providing an additional revenue stream for FedEx. One of the key strengths of the FedEx Business Model is its focus on customer satisfaction.

Thus, solutions that leverage AI to streamline the supply chain and make it more reliable have the highest potential for transforming logistics. Balancing these factors and implementing these strategies can help companies overcome the challenges in last-mile delivery while enhancing customer satisfaction. To excel in last-mile delivery, companies must prioritize customer understanding and enablement, getting to know the unique preferences and expectations of their customers. The software solution also provides the tracking of shipments through a mobile application.

Uber Freight

According to the ASCM, CLTD certified professionals report earning 18% higher salaries than those without it. To earn the CLTD designation, you’ll need to pass one exam, and to maintain the certification, you’ll need to earn and submit 75 professional development maintenance points every five years. Supply chain management ( SCM) is the overall process of procuring raw materials to develop into finished products that can be delivered to end-users, such as software, hardware, and other IT and tech services offered by companies.

3PL involves outsourcing logistics and supply chain management functions to external service providers. AI adds greater efficiency to this and other areas of customer support by automating the process of interpreting and acting on customer communication. For example, questions about delivery times and processes can be managed by AI chatbots that have access to delivery data. In many cases, chatbots can go beyond simply reducing the burden on customer support personnel to completely eliminating the need for human involvement. Last-mile logistics companies can also leverage AI-powered systems to manage driver deployment.

The cloud platform allows Alpega to release upgraded software to the customers on a quarterly basis, in contrast to on-premise software that follows a yearly upgrade cycle. The tamper-proof solution functions as a trustable and decentralized networking marketplace. This, in turn, ensures open communication across supply chain operators and stakeholders. OBORTECH is an Estonian startup that utilizes blockchain to build a connected and secure supply chain ecosystem.

Chatbots limited to generic information will quickly frustrate customers, potentially costing you their business. It’s also possible to utilize AI chatbots to support drivers when issues arise, which can dramatically increase efficiency by cutting down on the number of messages dispatch teams must reply to. At the same time, AI can handle a significantly higher volume of driver support inquiries thanks to its ability to provide solutions quickly and effectively. In this way, AI can empower more support with significantly less effort for the dispatch team, improving service to clients. You can foun additiona information about ai customer service and artificial intelligence and NLP. The power of artificial intelligence (A) lies in its capability to solve pressing problems. In logistics, those problems are often related to inefficiencies resulting in supply chain breakdowns.

This process involves coordinating more than three million people and thousands of partner businesses and facilities. Without a robust logistics management system, Apple’s entire supply chain would grind to a halt. The Institute for Supply Management (ISM) offers a Professional in Supply Management (CPSM) certification that validates your knowledge on supply management functions across several industries. The ISM touts the CPSM as the “most recognized supply chain management certification” you can earn. The ISM offers several certification paths, including self-paced learning, learning bundles with everything needed for all three exams, guided learning hybrid courses, and classroom-based training onsite at your organization.

As technology progress continues, it is important for companies to be proactive and identify potentially disruptive changes at an early stage. The startup’s software thus allows businesses with on-demand, pickup, delivery, or courier services to mitigate in-house software development. This, in turn, allows them to mitigate expensive development costs and accelerate the time to market. Quantum computing could support better decision-making by simulating more disruption scenarios and quantifying their impact on various parts of the network. Quantum computers performing risk and impact analysis may be able to reduce the number of “what if” simulation scenarios necessary, helping improve recovery times, lower costs, and lessen operational and customer service impacts. In addition, quantum machine learning may enable more precise classification and prediction of disruption events.

AWS DevSecOps Tool chain provides greater speed and agility for dev & security teams which helps 3PL Service Providers to attain agility in demand management, obtain advanced and flexible dynamic pricing modelling capabilities. Retailers around the world are becoming more resilient and are quickly adopting omnichannel, direct-to-consumer (D2C) models to reach their consumers. Reach your full potential by letting us simplify and connect your supply chain from end to end. In today’s rapidly changing world, maintaining a smooth and reliable flow of goods is crucial. The Maersk Supply Chain Resilience Model helps businesses stay agile and flexible, even during uncertainties. This surpasses a mixed strategy of being all things to all people (37.3%), a cost leadership strategy (16.0%), or a product/market innovation strategy (6.2%).

“Historically, there have not been many developments from a machine learning standpoint as to how product goes into and comes out of the warehouse,” says Downie. “That’s rapidly changing.” Now, 3PL organizations can adopt AI-based warehouse management software with automatic slotting, which utilizes past patterns of product movement to automatically direct the handling of new inventory. Technology is the foundation of modern logistics, bolstering efficiency, visibility, and adaptability.

• The startup’s blockchain and cloud-powered communication solution, Smart Hub, allows stakeholders to store and share information in a central platform.
• Overestimating AI’s capability, especially in the B2B space, can lead to serious problems.
• The brand overhauled its supply chain to ensure fair labor practices and reduce its environmental footprint.
• A 3PL will send order confirmation to customers, as well as confirmation of shipping and delivery.
• The GlassWing platform forms a logistics service network connecting the freight owners with transporters.

Supply chain management and logistics are often thought of as one in the same, but the terms actually capture two distinct parts of what it means to move resources. Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their customer service in logistics management final destination. Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility. That was back when firms had way too much inventory on hand that wasn’t moving, since consumers weren’t buying much of it.

Our local LCL product experts and global customer service teams ensure we’re keeping our delivery promise that your cargo reaches its final destination on time and as planned. At Maersk, we offer instant LCL pricing online – simply log in to our LCL booking portal or download the Maersk App to get started. When product demand can surge up or down unexpectedly, businesses need a supply chain solution they can rely on to fulfil customer requirements. With predictable lead times and schedules, you can ensure customer satisfaction through the seamless movement of cargo and consistent service levels.

The entities involved in the supply chain include producers, vendors, warehouses, transportation companies, distribution centers, and retailers. Supply chain management is a crucial process because an optimized supply chain results in lower costs and a more efficient production cycle. Companies seek to improve their supply chains so they can reduce their costs and remain competitive. We are becoming a model supply chain by ensuring our benefits to the customers and the low cost of services equals a great value both to the patient and to the company. That’s why we have designed our Supply Chain Management (SCM) services to help cater to your logistics complexities. Our local expertise along with our global infrastructure provides you with a strong supply chain backbone that will help you grow your business and exceed customer expectations.

While working with one may not eliminate shipping surcharges altogether, it will insulate you from them and diversify your risk, as 3PLs typically have relationships with multiple carriers. Relying on a 3PL means you get the benefits of skilled warehouse staff, as well as warehouse automation technology, without investing cash into developing your own. Robotic machinery to pick and pack orders, for example, means human staff don’t need to be on-hand to fulfill orders. The machinery works 24/7, so retailers can benefit from later order cut-offs for immediate shipping. If you’re investing in your own warehouses and distribution centers, costs aren’t set to decrease any time soon.

As the ecommerce market has grown exponentially, so too has the 3PL (third-party logistics) market, which will be worth $1.59 trillion by 2028. The traditional approach to ensure safety has been to mount sensors that shut down lifts when bumps are detected. In reality, such a system leads to higher costs when sensors can’t distinguish expected or normal bumps from harmful ones. Important success factor for me, especially at the beginning of my career, was the support of my mentors.

Leveraging AI to enhance the efficiency of sales activities adds to the company’s overall profitability, which can translate to cost savings for clients. Supply chain logistics management is no longer a simple matter of moving goods from point A to point B – it has evolved into a strategic function that can drive greater business impact. Johnson and Clay said that they know firsthand how a reputation for poor warehouse and dock management can drive up freight costs for shippers. This approach also prevents underutilization of vessels and transportation assets by adapting capacity to match demand, reducing costs and environmental impact. Elastic logistics mitigates constraints on warehousing and storage by dynamically adjusting space requirements.

She added that we can expect inventories to stay low as supply chains continue to stabilize. The value chain framework helps organizations identify and group their business functions as primary or secondary activities. Analyzing these value chain activities, subactivities ChatGPT App and the relationships between them helps organizations understand them as a system of interrelated functions. Organizations can then individually analyze each to assess whether the output can be improved — relative to the cost, time and effort required.

Logistical considerations affect global supply chains, what items are in stock and when as well as where manufacturers chose to build their facilities. These influences are just one way that logistics displays importance in our global economy. Specialized training in supply chain management and logistics often includes core or elective courses, or even discrete programs of study, in business education. A business degree that emphasizes these skills—or in some cases, a technical degree in systems analysis or database management—is usually necessary to begin what is often a well-paid career as a logistician. “Logistics” was initially a military-based term used in reference to how military personnel obtained, stored, and moved equipment and supplies. The term is now used widely in the business sector, particularly by companies in the manufacturing sector, to refer to how resources are handled and moved along the supply chain.

Be sure you know whether you’ll be credited for broken or lost items—understand the service-level guarantees offered to gauge your liabilities. The advantage of using a 3PL is you can lean into a partner’s existing setup to store, pack, pick, and ship orders. Evaluate how efficient that process is and whether they’re equipped to handle a rise in inventory as your own business scales.

Merchants often forget to include storage costs in their fulfillment expense calculations. By reducing wasted warehouse worker footsteps, the 3PL organization becomes more productive, more cost-effective, more accurate, and nimbler. It can ship orders more quickly and less expensively, providing end-user satisfaction and decreasing client expense. One important caveat to note is that companies must closely monitor chatbots serving this function to ensure they provide excellent service. It’s helpful to think of chatbots as capable but inexperienced—just like any new hire—that need managers to periodically tweak their engagement to ensure it meets quality standards.

For example, in the natural gas industry, logistics involves managing the pipelines, trucks, storage facilities, and distribution centers that handle oil as it is transformed along the supply chain. An efficient supply chain and effective logistical procedures are essential to reduce costs and to maintain and increase efficiency. Poor logistics leads to untimely deliveries, failure to meet the needs of clientele, and ultimately ChatGPT causes the business to suffer. Company size, growth trajectory, distribution costs and customer service needs are just a few of the factors businesses need to consider, experts told Supply Chain Dive. Shipping disruptions, demand swings and inflationary pressures have also influenced companies’ decisions in recent years. The FedEx business model is a compelling example of success in the logistics and transportation industry.

By 2023, this number jumped to 58%, signaling the urgency for a digital-first approach in supply chains. These consumers are not just reshaping retail; they are redefining how supply chains must operate in a digitally interconnected world. In addition to these reactive measures, reverse logistics enables a proactive approach to promoting sustainability. By analyzing returns data, companies can identify and address the likely causes of goods being sent back — such as design, build quality, promotional language, and even the returns policy itself — and take action to address these.

A study for KPMG found that, across multiple sectors, the top 25 leaders in customer services achieved five times the earning growth and seven times the revenue growth as the bottom 25. Even logistics and transport companies are taking note – 80% of them told KPMG they were focussed on making improvements to customer experience. Skilled professionals who understand the intricacies of supply chain management, logistics planning, and customer service are essential. Their ability to make quick decisions, solve problems, and adapt to unforeseen challenges is invaluable. The logistics industry is undergoing a digital transformation, which necessitates a workforce capable of leveraging the power of data analytics, artificial intelligence, and automation. Companies should invest in talent development and training to ensure that their teams can fully leverage the available technology.

• To maintain your certification, you need to complete 50 hours of approved continuing education credits over a three-year period.
• If your certification isn’t maintained within five years, it will expire before the 10-year mark, and you’ll be required to retake the exam.
• It’s true that inventory stored in a 3PL’s warehouse won’t be immediately accessible to you, which may feel disconcerting at first.
• Crowdsourced delivery platforms tap into local resources for flexible, on-demand service.

Okoone deploys managed teams of experts ideating, building and managing world-class digital products. One of the main challenges here lies in striking the right balance between cost reduction and service excellence.

Robeff Technology’s products include the RBF-ESC200 electronic speed controller and the RBF-DBW40 single-phase bidirectional steer-by-wire and brake-by-wire control unit. Additionally, its torque sensor interface enhances efficiency and response times for safe autonomous control. These innovations reduce the cost of in-house delivery operations across various industries, including food and retail.

Don’t choose a 3PL based on where you are today, but rather where your business is going to be one to three years from now. Asset-based 3PLs might be pricier due to their investments in equipment, but they could offer more stable pricing. When deciding on a 3PL parcel transportation provider, explain your origin and destination locations and the time frames you expect for stock to move between. Since 3PLs are able to negotiate preferred shipping rates, the cost of shipping is typically lower. And those savings, in turn, can be passed on to consumers by offering them free shipping. In contrast, 3PLs have strongholds over their storage premises, and higher order values from their retail partners gives them grounds to keep their warehouse space.

For example, UPS uses AI to analyze data from its delivery vehicles to anticipate traffic patterns and discover more efficient routes, saving millions of miles and dollars each year. Forecasts are typically based on historical sales data, such as seasonal sales volume patterns. However, demand planning also considers unique factors like the impact of recent marketing campaigns, new product launches, and products that go viral on social media. Inventory management is all about keeping track of what’s in your warehouse or store and ensuring you have enough stock to meet customer demand. For larger retailers, inventory organization is an ongoing task that requires continuous attention. Effective inventory management informs employees of stocking issues and allows them to locate and package items for customer orders quickly.

She has worked in multiple cities covering breaking news, politics, education, and more. Furthermore, by leveraging the container management capabilities of Kubernetes deployed on a AWS cloud, the platform provides high scalability, availability and security with self-healing runtime environment. Serving the patient by assuring the right product is in the right place at the right time at the right cost.

Green logistics refers to efforts to minimize the environmental impact of logistics activities. This can include using fuel-efficient vehicles, optimizing delivery routes, using eco-friendly packaging, and improving recycling practices. As businesses become more environmentally conscious, green logistics is becoming an increasingly important consideration. Logistics and supply chain management are terms often used interchangeably, but they refer to different aspects of inventory and goods transport. Automation frees your logistics team from repetitive, time-consuming tasks like order picking or generating shipping labels.

Shopify makes it easy to manage your warehouse and store inventory from a single platform through Flexport. Logistics is getting resources—people, materials, and products—from their point of origin to their destination, efficiently and on time. Logistics refers to the process of storing, coordinating, and moving resources to a destination as needed. I have been with the organization for just over seven years and started in retail sales. During my senior year at the University of South Florida, as part of a Professional Development course within the business school, I participated in « mock interviews ».